EXTENDED PHASE-IN OF THE INPATIENT REHABILITATION FACILITY CLASSIFICATION CRITERIA.

SEC. 5005. EXTENDED PHASE-IN OF THE INPATIENT REHABILITATION FACILITY CLASSIFICATION CRITERIA. (a) In General.—Notwithstanding section 412.23(b)(2) of title 42, Code of Federal Regulations, the Secretary of Health and Human Services shall apply the applicable percent specified in subsection (b) in the classification criterion used under the IRF regulation (as defined in subsection (c)) to determine whether a hospital or unit of a hospital is an inpatient rehabilitation facility under the Medicare program under title XVIII of the Social Security Act.(b) Applicable Percent.—For purposes of subsection (a), the applicable percent specified in this subsection for cost reporting periods—(1) beginning during the 12-month period beginning on July 1, 2006, is 60 percent;(2) beginning during the 12-month period beginning on July 1, 2007, is 65 percent; and(3) beginning on or after July 1, 2008, is 75 percent.(c) IRF Regulation.—For purposes of subsection (a), the term “IRF regulation” means the rule published in the Federal Register on May 7, 2004, entitled “Medicare Program; Final Rule; Changes to the Criteria for Being Classified as an Inpatient Rehabilitation Facility” (69 Fed. Reg. 25752).